CORPORATE TAXES
SIGNIFICANT DEVELOPMENTS
Certain significant changes have been made in the tax rates applicable to corporate entities. Details are provided below.
The procedures for lodging objections and appeals with regard to tax assessments have been changed . The agencies and courts with which objections and appeals are to be filed are outlined under “ Tax administration” below.
TAXES ON CORPORATE INCOME
Income tax/The recently issued Royal Decree 26/99 has made certain significant changes in the tax rates applicable to corporate entities, with a view to encouraging foreign investment. The decree has identified three categories of companies to which the following new rates are applicable for the tax year 1999 and subsequent years.
1. Wholly owned Omani companies, majority-owned Omani companies, investment funds established under the Capital Market Law, and public joint stock companies listed on the MSM-These companies will charged tax at the following rates.
NET INCOME RATES
%
First RO 30,000 Nil
Over OR 30,000 12
2. Companies with more than 49% but less than 100% foreign ownership-These companies will be charged tax at the following rates.
%
First RO 30,000 Nil
Next RO 100,000 15
Next RO 150,000 20
Over RO 280,000 25
3. Companies with 100% foreign ownership-These companies will be taxed according to the table on the following page. Tax is computed (1) by applying the percentage relative to the bracket in which the taxable income falls or (2) by applying the percentage of the bracket for taxable income immediately below that in which the taxable income falls and adding the excess of taxable income to the result. The lower amount is the tax payable.
TAXABLE INCOME
OVER NOT OVER RATE
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